Last week, the drums of war beat loudly as a U.S.-led strike in Syria seemed all but certain. The tides have changed, however, as a diplomatic outcome appears to be gaining steam. Syria said it will accept a Russian offer to put its chemical weapons under international control for eventual dismantlement, according to multiple news reports.

The move could be the first step to halting a potential military battle that could cost billions and roil one of the most volatile regions in the world. President Barack Obama will hold a news conference in the evening on Syria.

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Commodity markets had the sharpest reaction to the news. Oil futures slid $1.77, or 1.6%, to $107.74 a barrel. Wholesale New York Harbor gasoline dipped 1% to $2.775 a gallon. Gold dropped $18.60, or 1.3%, to $1,368 a troy ounce.

Traders reacted positively to data from China showing industrial production jumped 10.% on a year-to-year basis, exceeding estimates of 9.7%. The data come on the heels of a report showing the world's No. 2 economy is exporting more than analysts expected. The data have helped calm worries that China would be in for a "hard landing," where its growth cools down sharply.

There are no major U.S. economic reports on tap.

In corporate news, Goldman Sachs (GS), Visa (V) and Nike (NKE) will be added to the Dow Jones Industrial Average, replacing Bank of America (BAC), Hewlett-Packard (HPQ) and Alcoa (AA), S&P Dow Jones Indices said. This is the first “three for three” change to the benchmark stock-market index since April 2004.

Apple (AAPL) is expected to debut a new version of its high-end iPhone and roll out a low-cost iPhone at a closely-watched press event.